Hindustan Motors shares jump 10% on 'eco-friendly EV' push

Shares of Hindustan Motors jumped around 10 per cent on Wednesday after the automaker's announcement to extend its electric vehicle (EV) domain. The stock jumped as much as 9.85 per cent to hit a day high of Rs 18.40 from its previous closing of Rs 16.75 on the BSE. The shares were locked-in the upper circuit at the time of writing this story.

Around 5.79 lakh shares changed hand today, amounting to a turnover of Rs 1.05 crore. The company's market capitalisation stood at Rs 383.93.

The BSE group 'B' stock of face value Rs 5 has touched a 52-week high of Rs 26.80 on June 15, 2022 and a 52-week low of Rs 9.51 on May 12, 2022.

Also Read | Maruti Suzuki shares likely to rise 35% as diesel vehicles face bumpy ride ahead

In an exchange filing, Hindustan Motors said it "has entered into a Memorandum of Understanding (MOU) to extend the EV domain across the border to enhance the production of eco-friendly electric vehicle."

Prior to this, Hindustan Motors and its European partner had completed due diligence for the proposed electric two-wheeler project.

"Hindustan Motors entering EV segment and foraying into the 2-wheeler segment has led to a sharp increase in the stock price," said A R Ramachandran from Tips2trades said.

"Investors can only buy this stock on a close above Rs 18.35 for a potential target of Rs 26. Strong support will now be at 15.6-16," he added.

Also Read | Adani Enterprises shares rise as board mulls raising funds. Key details

Hindustan Motors, once known for its Ambassador cars, equipped itself with state-of-the-art facilities for the production of passenger cars, trucks and multi-utility vehicles.

As of September 30, the promoters holding in the company stood at 32.34 per cent, while institutions and non-institutions held 3.14 per cent and 64.52 per cent, respectively.